Discuss the internal and external environments of IBMSolutio

Discuss the internal and external environments of IBM.

Solution

Internal and external environmental factors affect how an organization functions.

The major components of the Internal environment includes all the elements within the organization\'s boundaries. The major components of the internal environment are : - The board of directors , employees , processes , culture & climate .

IBM is an equal opportunity employer with employee friendly policies . It is one of the first corporations to provide group life insurance , survivor benefits and paid vacations. The company has an education department which oversees training for employees. IBM hires the best people regardless of their race , ethnicity , origin or gender.

IBM has a very simple and streamlined internal process which has helped to improve its operations , sales force productivity and processes . The streamlined internal process has resulted in high client satisfaction .

The culture at IBM is unique. The company had a conservative stable culture produced by 1) property rights not tied to performance but to employee longevity in the organization . IBM has a tall centralized structure that promoted obedience and conformity. The people who were attracted and retained at IBM were those who liked working in a stable environment . where they knew the place, who accepted the status quo , and who did not mind that the culture limited their opportunities to innovate or be creative. The cultural values at IBM emphasized stability , therefore IBM was unable to adapt to the changes in the environment , such as changes in technology or customer needs.

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External environment at IBM : -

The external environment for IBM represents the major forces that are exerted on IBM by its general and task environments. In the general environment , IBM is taking advantage of the technological developments in silicon chips , the changes in the socio cultural dimension that have facilitated the acceptance of computers by society , new trade opportunities in the international market , and generally favourable economic conditions. On the other hand, the growth and development of IBM is constrained by certain forces in the general environment , such as political legal constraints , selected economic factors , and certain socio - cultural barriers to the wide spread use of computers. IBM\'s task environment poses both opportunities and threats from customers , competitors , suppliers and labor.